Gross Pay/Net Pay 2023

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What is Gross Pay?

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Gross Pay is the total amount of money earned by an employee before any deductions are made.

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What is Net Pay?

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Net Pay is the amount of money an employee takes home after all deductions have been subtracted from Gross Pay.

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What are deductions?

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Deductions are amounts that are subtracted from an employee's Gross Pay, including taxes and other withholdings.

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Which tax is NOT a deduction from Gross Pay?

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Capital Gains Tax is NOT a deduction from Gross Pay.

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What does FICA stand for?

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FICA stands for Federal Insurance Contributions Act.

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What is the purpose of FICA?

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FICA is used to fund Social Security and Medicare programs through mandatory payroll deductions.

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What is the total FICA tax rate?

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The total FICA tax rate is 7.45%.

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What is the State Income Tax rate in Texas?

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The State Income Tax rate in Texas is 0%.

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If an employee's Gross Pay is $4,000 biweekly in Texas, how much is deducted for State Income Tax?

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$0 is deducted for State Income Tax in Texas.

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What is Federal Income Tax?

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Federal Income Tax is a tax levied by the federal government on an individual's income.